Main menu

FEATURED

The Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) program guarantees repayment on qualifying reverse mortgages made by private lenders. Reverse mortgages let older homeowners borrow money by using the equity in their home as collateral. The borrowed funds can be used to repay an existing mortgage or to fund other expenses. In this report, CBO examines how the HECM program works, how it affects the federal budget, and how various policy changes might reduce costs and risks to the government or to borrowers.

QUICK LINKS

ABOUT CBO

CBO is strictly nonpartisan; conducts objective, impartial analysis; and hires its employees solely on the basis of professional competence without regard to political affiliation. CBO does not make policy recommendations, and each report and cost estimate summarizes the methodology underlying the analysis.